Desempeño profesional en el ámbito de la gestión legal

48 MODULE 2:

UNIT 7: MODES OF DISTRIBUTION IN AGRICULTURAL MARKETING

49 b. Explain the Meaning of Transportation c. Determine the Functions of the Middlemen.

3.0 Main Content

3.1 Meaning Of Distribution

Distribution means getting the farm products from where the products are produce to where it can be marketed. It also means the delivery or circulation of farm produce. The supply of farm products is an essential component of marketing. Distribution means the strategies managerial system, which involves logistic decision on how the farm products get to the final consumer. Before the products get to the final consumer, it must pass through some channel called distribution channel, which involves wholesalers, retailers and agents. The distribution of agricultural products is one and essential function of marketing. The mode of distribution of products is a function of demand for the product. Distribution of products cannot be complete without transportation via the various modes of transportation especially the land transport. In rural areas where agricultural products are produce the components of the various land transport are high used and involved in the distribution of farm products.

3.2 MEANING OF TRANSPORTATION

In its literally meaning, transportation means the movement or carriage of persons, goods and messages from place to place. It‘s also means the ability to overcome distance or the friction of distance. In this course, our concerned here is on the movement of farm produces from where it is produce (farm site) to where it‘s been assemble (collection point) before their final movement (distribution) to centers where their demand are needed. However, in the distribution and transportation of farm products, the middlemen are highly involved and they are saddle with that responsibility with the transportation and distribution of farm products. They ensure the adequate movement for the supply of these products from the producers to the final consumers. It should be noted however that the importance of transportation cannot be devoured from agricultural marketing because whatever the farmers produce must be transported and distributed to the final consumers.

Transportation of farm produce can be of various forms e.g. railways, motor vehicles, bicycles, and trucks. However, most transportation of farm produce is done by motor vehicles (trucks) and wheel-bicycles etc.

50 3.3 FUNCTIONS OF MIDDLEMEN

The middlemen are those agents (wholesalers and retailers) that serve as intermediary between the producers and the final consumer in the distribution and promotion of goods and services. In the chain of distribution, they act as the link between the producers and the consumers.

The following are the essential function of the middlemen: they are

 To make sure those goods gets to the final consumers

 They help the producer or farmers to sell their products

 They create awareness

 They help in storage facility

 They provide credit to the consumers based on inter-personal relationship 3.4 CLASSES OF MIDDLEMEN

By classes of middlemen we mean those persons or agents involved in the distribution of agricultural products from production points (supply) to consumption point (demand). There are various classes of distribution channel of agricultural products; some of these are as follows:

a. Farm Gate Middlemen: This class of agents is also known as farm gate collector.

They include intenerate farmers going on foot from one farm to another to buy farm produce which are then transported to local or urban market. These classes of agents are found virtually everywhere where agricultural products are produces. They are closer to the farmers than any other class of middlemen. They buy in bits owing to their limited financial powers and assemble for collection by their superior agents.

However, they are self-satisfied with the little profit they make from such trading activities.

b. Non-Commissioned Agents: These are people that take title to the commodity handled and provide significant transportation and storage facilities. Their financial strength is much better that the farm gate middlemen. They may sell to wholesalers, retailers and even to the final consumers. However, these classes of middlemen shared similar features with that of the first class mentioned above but they are not well organized.

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c. Commissioned Agents: These classes of middlemen are well organized than all of the above. They received commission for the job or services they provide. That is they provide an interactive contact between the farm-gate middlemen and the wholesalers.

These classes of middlemen are empowered with financial and material powers to act and buy farm products on behalf of these agents. Their commissioned received is a function of the qualitative and quantitative products they buy for their masters. Since they are empowered with better finance they buy in large quantity and stored for future needs.

d. Co-operative Marketing Agencies: This occurs where some groups of farmers form the consumers‘ co-operative society and use such society to sell their farm products for members of the society at reduce cost. This type of co-operative marketing agencies is a self-help trading business to help members of the society. They however, use these cooperative societies to sell directly their farm products to members and in situation where they run out of stock they even buy these agricultural products from other farmers outside the agency and sells to members of the society.

Other classes of the middlemen in the distribution of products are the wholesalers and retailers, which have been discussed in detailed in unit 9.

Self-Assessment Exercise:

Differentiate between the farm-gate middlemen and the commissioned agents middlemen.

4.0 Conclusion

The distribution modes ensures that the channels of flow of products from where its produce to where it‘s been consumed are sustained. The distribution of products is done through various channels.

5.0 Summary

The Distribution of agricultural products enhances the flow of farm products from where its produce to where they are needed. The various modes of transportation aid the distributions of farm products.

There are various classes of middlemen. The functions of middlemen cannot be over emphasized.

52 6.0 Tutor-Marked Assignment

Give a comprehensive note on all of the following:

Farm-gate middlemen Function of middlemen Wholesalers and retailers

7.0 References/Further Reading

Central Bank of Nigeria (1997), Annual Report and Statement of Accounts.CBN Publication. Lagos.

Federal Ministry of Agriculture Water Resources and Rural Development (1988), Agricultural Policy for Nigeria.FMAWRD Publication.

Ojo, S. O. (2000), A Comparative Economic analysis of Oil-Palm Farms in Ondo State, Nigeria.

Unpublished Ph.D Thesis in the Dept of Agric Economics and Extension, Federal University of Technology, Akure.

Oludimu, O. L., Imoudu, P B (1998), Institutional Reforms for Agricultural Development (Essays in Honour of Late Professor SegunFamoriyo) Published by Triumph Books Publishers, Ijebu Ode.

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UNIT 8: ROLES OF FARMERS IN AGRICULTURAL MARKETING